CEO John Hess told investors last week that the company remains optimistic despite a net loss of $339 million and falling production. Bakken production fell to 107,000 barrels of oil equivalent per day (boepd), down from 113,000 boepd over 2015. Hess attributes the decline to reduced drilling program due to the low oil-price environment.

Our Bakken team continues to offer excellent operating results and returns in the core of the play that are competitive with the Permian and Eagle Ford,” he said. “Our high-quality Bakken acreage, industry-leading drilling and completion costs, and advantaged infrastructure position our Bakken assets to be a major contributor to the company’s future production and cash flow growth.

— John Hess, CEO

During the quarter, the company operated an average of three rigs in the Bakken and brought 22 gross operated wells on production. The company’s total production for the quarter was 314,000 boepd. Other highlights include:

Drilling and completion costs in the Bakken averaged $4.7 million per operated well—down 11%

Increased standard well design to a 50-stage completion from the previous 35-stage completion design

Net midstream income was $13 million in Q3 2016 compared to $16 million last year

Midstream capital expenditures were $88 million for the quarter—the same as Q3 2015

Reduced exploration and production capital and exploratory expenditures by 49% to $435 million, down from $849 million during the same period last year

Hess projects that E&P capital and exploratory expenditures for the full 2016 will be approximately $2 billion, down $100 million from our previous forecast and more than 50% below 2015.